Franchise Vs. Own Startup — Which one is suitable for you?

You know you want to have your own business and start a career with a great ROI. But you aren’t able to decide whether to buy a franchise or create something from scratch. The horror of challenges, failures, ROIs, future, and career haunts you from within while taking this decision. You have seen a nearby McDonald’s outlet and wish to have something such as your own. On the contrary, you also dream of being a master in innovation and entrepreneurship and have your own brand for your new business ideas.

Well, having such confusions and dilemmas can indeed have challenging solutions. Have a look at some pros and cons of having a franchise vs. an own startup, respectively.

Pros of buying a Franchise

Skipping the first constructive stage

The toughest challenge is the startup stage which is arguably the major and most worked stage. It requires planning new and innovative business ideas, plotting down effective strategic business plans, conducting in-depth market research, investing upon various assets such as business intelligence analysts, skilled employees, on-time productions, etc.

Relating to these challenges or tasks, buying a franchise never gives you the hardship of accomplishing these tasks. Because the system has already undergone multiple tests and implications, you only need to follow its procedure to set up your chosen outlet.

Instant Recognition and Market benefits

It isn’t easy to build a brand name, especially when the market is getting bigger every second. Having a startup business of your own takes time minimum of 4–5 years to gain market recognition and build customer engagement. Even so, a newly opened brand always has a chance of business failures leading to uncertain bankruptcy.

On the contrary, a franchise has got no such issues. It already has an established name and recognition. It doesn’t have to pull customers to its service rather vice-versa. Therefore, you get to choose among thousands of established brands having nationwide recognition. As for the customers, they would never abandon the iconic McD’s ‘french fries with double cheeseburgers’ even in the darkest corners of the city.

Training programs

You cant run a business with an inexperienced character certificate. Whether it’s your startup or a franchise, being a master in innovation and entrepreneurship or having a diploma in business skills development courses like those provided by the EMS Global training center heightens your chances to be a great leader and an entrepreneur.

However, you will be a great profit on choosing to set up a franchise store as they come with reliable and essential training packages. It includes on-site training, demo operations, hiring processes, on-sale profits, etc.

Help in Marketing and Advertisements

It is utterly important to implement effective marketing techniques to create brand awareness and market recognition when running a business. Marketing is equally important as employees in an organization. Readout this article on How marketing keeps a business alive to know the importance of trending marketing and advertising techniques.

Although as an owner, it is also noticeable that certain investments need to be indulged in marketing processes, however being a franchise owner, you would not have to worry about that. With little or no investments, the original system will help promote your advertisements through nationwide marketing campaigns. On top of that, they already have the customers’ support and trust, which makes the process smooth and easier.

Cons of Buying a Franchise

Just like its pros, franchise setups come with their own set of cons.

Abiding by the Franchise Law

When in a business owner position, you might want to be the boss. But that’s not exactly the case when seen. After signing the contract for franchise ownership, you need to abide by the company head’s rules and regulations. You might be interested in innovation and entrepreneurship and even got some effective strategic business plans in your mind. Yet, you might not want to get depressed and feel oppressive as the policy is against any personal changes.

High starting costs

Letting go of the rest of the costs but buying into a franchise outlet is itself high. So high that it may precede the costs of setting up your own business. The franchise fee is itself costly, asking you to exhaust all your liquidity. On top of that lies the expenditure of the land, the resources, etc.

Webbed Contractual Agreements

When you agree upon a franchise, it lists down several agreements in the disclosure form. After signing up for the paper, it often becomes difficult to get away from such a highly secured Franchise Disclosure Agreement. Upon one of the many rule breaks, you have a chance of losing it all with no commission in return. In addition, even if you feel like leaving it all in between, you cannot before the contract ends.

Pros of having your Startup

With a few of the pros and cons of franchise businesses being cleared, let us have a look at certain pros and cons of building your startup.

You have control over your own business

Since you are the owner of your new business ideas and would like to integrate them with innovation and entrepreneurship, it is a bliss to enjoy a brand under your mentorship and recognition. You have absolute control over the success and failure of your business. It is you who would be planning for a product vision and mission.

Rules and regulations, company policies, employees, sales, and profits are all under your surveillance.

The happiness of someone using your product

Unlike an employee or franchisee, when customers approach you to purchase your products and services for the brand name you created with years of hard work, that is the happiness we are talking about here. As a business owner, it is complacent about achieving your goals and proceeding with your chosen career.

You create your wealth

While it may be hard to believe, but most great entrepreneurs started from nothingness. All they were helped with was their idol and their success stories. Similarly, when they rose higher, though with years of hard work and failures, they achieved the wildest of their dreams they never thought of. They carried back high ROIs and enjoyed life at their best.

This is the first lesson for an entrepreneur — Not to think about Money! Because it just keeps coming only to increase but with heavy perseverance and positivity.

Success feels fulfilling

In innovation and entrepreneurship, you face the worst of the challenges due to major business factors. But it’s alright as success is all worth it. Just how miles of trekking give us a fulfilling satisfaction upon reaching the summit, similarly, years of hardships and failures bring satisfactory success — success that allows you to sound asleep every night.

Cons of having own Startups

Entrepreneurship might sound cool as it brings home huge bucks. But that’s not fully true. Partially it also has its own cons to consider while thinking about building your startups.

You’ll work Harder and Longer

Having your own business doesn’t mean there’s less work for you. In fact, it is you who has the major responsibility to operate, manage, produce, sell, and reflect. Especially in your earlier startup stages, you need to be responsible enough to work harder and longer hours to build trust and authenticity among your teammates. You need to employ your physical and mental strengths on maximum standby to achieve your first few challenges.

You will be unsure of your works

Most of the entrepreneurs are either first-timers or have family support. Those having a strong backup have not got much to worry about but those who are first-timers and inexperienced. Entrepreneurs are mostly unsure of their business-level strategies since it’s a whole new journey in the business world with repeated failures and competitions.

Bottom Lines

People purchase franchises because it meets the requirements of those careful and professional entrepreneurs. Similarly, suppose you have some solid and creative new business ideas and are confident about its outcomes amidst all the hurdles. In that case, entrepreneurs can start their startups and plan on setting their effective organizational performance management.

The Expert Mind Solutions is a professional consultancy firm that provides professional and efficient company consulting ideas for leaders and entrepreneurs to decide. In the end, your decision comes with both pros and cons, hence the conclusion of you to start in the business world.